What Is Eminent Domain?

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What is Eminent Domain?

If you’re seeking a definition of eminent domain, you’ve likely recently received unsettling news from a government body or other entity with the power to take your property. It’s natural to ask, “What is eminent domain?” when your property rights are suddenly at stake.  At Cranfill Sumner, our experienced eminent domain attorneys can help you understand how the power of eminent domain may affect your property and the rights you have in defending yourself and your property.

The Definition of Eminent Domain

Eminent domain is the power of government—or those who have been delegated governmental power—to take private property for public use. This authority extends to federal, state, county, and city governments, as well as entities like airport, water, and sewer authorities. In some cases, private entities such as utility companies also hold this power. Whether your property is residential or commercial, it can be subject to eminent domain.

The History of Eminent Domain

Eminent domain has roots in Biblical-era laws and came to America through English common law.

The Fifth Amendment of the U.S. Constitution acknowledges eminent domain but imposes limitations on this power:

  • The taking must be for public use.
  • Property owners must receive just compensation.

Other constitutional rights or doctrines also protect property owners, such as separation of powers and due process.  For example, only the legislature may delegate the power of eminent domain, and those exercising the power must strictly comply with all the requirements the Constitution or legislature place on the exercise of this power.

Public Use and Just Compensation

The term “public use” has evolved over time. It typically refers to projects like:

  • Road improvements,
  • Public schools or libraries,
  • Reservoir construction or the like.

However, modern courts have interpreted public use more broadly. For instance, the United States Supreme Court has held that governments may use eminent domain to address urban blight or even to justify projects that primarily provide a public benefit, such as generating tax revenue.

The Fifth Amendment guarantees property owners just compensation—typically the fair market value of the property. Unfortunately, initial government offers are often inadequate and fail to consider the highest and best use of the property.

Understanding the Eminent Domain Process

The condemnation process begins when a governmental entity identifies the need for a specific property. Key steps include:

  1. Appraisal: The government conducts an appraisal to determine the property’s value.
  2. Initial Offer: Property owners receive an offer, often below what they are entitled to as just compensation.
  3. Lawsuit Filing: If the property owner rejects the offer, the government may file a lawsuit to seize the property.

At Cranfill Sumner, we guide property owners through this complex process, ensuring their property rights are protected and that they receive fair compensation.

Eminent Domain Abuse

While eminent domain is legal, it is sometimes abused. Governments may overreach or undervalue property to achieve their goals. If you suspect eminent domain abuse, it’s critical to consult with an attorney immediately. Cranfill Sumner’s attorneys specialize in identifying and fighting such abuses to protect your rights.

Your Rights as a Property Owner

You are not obligated to accept the government’s appraisal of your property or its offer of compensation.  The fair market value of the property should be based on its highest and best use, which may not be its current use.  The government must also consider any damages to your property.

When the government acquires your property, it will deposit the full amount of its offer with the Clerk of Court.  With the proper filings, that money is yours to use without forfeiting the right to continue fighting for a higher amount of compensation.

Your right to compensation includes not only the property taken but also the reduced value of any remaining property, a factor overlooked or under-valued in many  compensation offers.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Cranfill Sumner LLP

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